The German airline Lufthansa wants to take part in the much-needed consolidation of the industry in Europe, so that the local carriers could better compete with US and Asian rivals, said CEO Carsten Spohr.
During the Annual General Meeting in Hamburg on Thursday, Spohr said that the five largest airlines in the United States own 80 % share of the local market, while in Europe, the top five carriers share only 40 % of the market.
"Consolidation is a part of what needs to happen in Europe in order to make the sector more competitive in comparison with the United States and Asia", - said Spohr.
“As the largest airline in Europe, we want to take part in the consolidation, rather than be a bystander,” - he told the investors.
Lufthansa said late on Wednesday that it is considering ways to include Brussels Airlines, which it partly owns, in its budget brand – Eurowings, although the attack in Brussels has deferred a decision for August.
Sources also told Reuters that Lufthansa is considering a partnership or takeover of the Scandinavian airline SAS and Condor, which was owned by Lufthansa for decades, and was later acquired by the British Thomas Cook.
The British carrier Monarch said on Thursday that it is also considering the possibility of acquisitions, and Qatar Airways announced on Wednesday about increase in its share in the international aviation holding IAG to 12 %.
However, some analysts and bankers told Reuters that they do not expect big deals, as there are more probable small contracts or cooperation agreements.
As for the German stock market, it finished Thursday trading mixed based on the strengthening of resources, technology, and transportation and logistics sectors and negative dynamics on the part of utilities, industry and software sectors.
At the close of the Frankfurt Stock Exchange, DAX 30 rose 0.21%, MDAX index dropped by 0.20%, and TecDAX index fell 0.81%.